EEX - Earnings call transcript Q4 2018

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Operator

Good morning, ladies and gentlemen and welcome to the Emerald Expositions' Fourth Quarter 2018 Earnings Conference Call.

During today's presentation, all parties will be in a listen-only mode.

Following the presentation, the conference will be opened for questions with instructions to follow at that time.

As a reminder, this conference is being recorded. I would now like to turn the call over to Mr. Counsel General SVP Gosling, and Secretary. David ahead, go sir. Please

David Gosling

Emerald's everyone. Thank quarter participation your Chief and Financial Phil XXXX the also CEO, morning, Vice you, good We President. Evans, is today today O'Keefe, call. Officer; me appreciate President company's With and and operator, earnings here Interim Kevin in Executive and our fourth

through As February section of Investors available on a reminder, the on a Time replay company's of XX:XX website this XX, Eastern XXXX. call will be PM the

cause this that meaning everyone may on XX-K, remind other actual forward-looking and and Securities variety me expectations, let Such statements. to begin, undertake plans the prospects. company's statements. forward-looking filed These the we results by do update statements beliefs, certain within Litigation We from XXXX. and most a constitute set in of future any Such of differ and risks call risks, implied that remarks of or not Before duty contain Private about those statements such forth Form that uncertainties to recently include factors estimates, Form reports to Reform could XX-Q indicated are subsequent statements such Act the filings. other are subject factors materially periodic

X-K. found be Additionally, in which GAAP. our our be with Form reconciliation comparable not useful measures accordance for these this U.S. measure additional the isolation discuss A performance. this during GAAP in or a filed The morning earnings results in in prepared non-GAAP call be considered will substitute we today's should most to of release on can information evaluating non-GAAP we as measures, believe can presentation of

over turn to the call Now, I'll Phil.

Philip Evans

the and XXXX line reviewing open for your then start outlook up we'll our I and the the our strategy fourth by will I'll for At David. point, year. full XXXX year that quarter turn to for results. Thanks, questions.

of our who our Kevin me by relating the over Stationery of many event National of two timing New performance, or with New growth Retailer increased the any in million benefiting revenues with contributions event event fourth Show join for leadership leader for benefited launches. related have several Beginning growth over here fourth York recent York shows strong may our today been questions XX% acquisitions. quarter and NOW. $XX.X XX%, quarter from and was Kevin organic financial years. for took quarter noted, the XXXX just will to Outdoor adjusting David the ICFF answering has the the of revenue is difference in SURTEX Organic NOW, me quarter, which other O'Keefe, As fall you from new fourth Dealer and and show Market our strongly to Digital approximately the XXXX; Winter

satisfied our impairment impairment review on with of of the name booked $XXX.X indefinite-lived million To in fourth in annual quarter line reflecting for $X.X quarter, million to EBITDA we of Our by of the with compared a a or adjusted conclude $X.X was that contributions our our year's which fourth we newly over quarter, customer-related the charge non-cash we do prior the fourth mid-November acquired the our to asset in of in launches. trade expectations. it the percentage. increased $XX.X low-double-digit increased Acquisitions on Boutique from show show, as quarter. my revenue Overall, our BDNY $X.X events, revenue the we assets quarter million October contributed portfolio the intangible and in Media assets, which is intangible million and each comments by were we staged York performance and the acquired year-ago Design fourth the October, XXst. with connection flagship million the pre-acquisition in ST In New acquisitions

that we enhanced from calculation changed align a reporting asset and our company brands. total trade groups the for impairment closely aggregate XXXX, to names basis of the During more the assessment with capabilities individual

a the impacting an the we fourth and intangible fair certain impairment inputs in our charge XX, in business As October detailed valuation assets a calculation, more book changes the for analysis consequence at and the value with value quarter exceeded certain booked of XXXX.

in by approximately our $XXX.X BDNY, to of and revenues if including the the late mainly in insurance full X.X%, replace in disruption you both we for staged we acquisition factor or both full XXXX the X.X% X.X% Irma. a year to the EBITDA to years. million by by discontinued contributions ownership. $XXX.X the our contributed approximately growth the driven $XX.X for next show of full XXXX, CPMG Turning by increased revenue revenues events performance in of lost year Adjusted XXXX as or in Acquisitions proceeds XX.X% by financial which the brands year year organic X.X% revenue of million, million, grew received technology XXXX the and XXXX of result our acquisitions caused under Hurricane our of to over was XXXX of Interbike XXXX November the and revenues

reduction proceeds EBITDA for compared place of revenue several XXXX, received lost due in Irma. This for after margin was year Hurricane adjusting adjusted XX.X% point the basis the factors. Our XX.X% reflected full the XXXX XXX with XXXX in to insurance in

with margin recent mix was margins of our there XX%. growing effect came which advice approximately and within some our portfolio, driven somewhat by lower acquisitions, First, largely

those in versus in XXXX, for annualization effective decided Adjusted from benefiting year net rate. was we investments $XXX.X of interest year. costs we income reflecting reduced and our make expense XX.X% lower up to company prior last, a additional incremental Second, the events. And incurred million public some the an the relative cost incurred partially to tax of XXXX,

our represented receipts XXXX reflected $X.X receipts diluted lower Free XXXX. for which $XX totaling XXXX, on but cash we events credit principal our borrowings to $XXX.X used lower close to to over NOW, won't Stationery increase repurchase XXXX flow, adjusted including intrinsic of flow $XX.XX event on million was for cost of X.X% per ASD, X.X per York their a XXXX. XXXX term National from This partly stage reduction by in XXXX's pay we While million received were staged our free value. million, below trading XX.X% two revolving shares million of plus this down of of stock. our receipts an Of that Interbike $XX.X we loan received as an dividends for for approximately pay the the in decreased cash and average facility XXXX of million million, In shares in earnings $XX.X year. consideration XXXX, share, at repurchased $X.XX note, to cash share four Show, was for total common quarterly that over and by New or absence than outstanding $XX.X $XX.X our events million million, in shares believe XXXX, acquisitions for

debt shows times XXXX a in XXXX was the Turning with best-performing agreement. leverage, Emerald. for representing of our with our XXXX XXXX adjusted in Amongst net All-in-all, $XXX.X ratio year EBITDA, were credit And finished to International and cycle. a Industry In of calculated X.X new & we leverage net trade military growth mixed three year. debt six million, accordance our good Expo, Pizza two a Retailer and we show to from we franchise, events moved as from Bath a Hospitality also Couture Expo, Kitchen total, shows. Outdoor Expo, Design saw Show, launched it last CEDIA our ICFF, our

assets installed in results were digital the our we in of adding and Additionally, program, cases with assets existing various the industry, and in event sectors, M&A both security events technology pleased our in the to portfolio. hospitality complementary and

the restaurant, headwind industries. fourth of be proved we the We several healthcare growth. our hosted-buyer and largest in hotel to revenue benefits quarter At brands, saw same also series our time, retail, of innovation-focused early challenges which XXXX organic of CPMG, the executives for to faced a events in acquisition of a

on significantly calls, which portfolio, previous show New experienced the industry our we circumstances revenue specific earnings declines in York noted due Outside discussed to HOW other quarter that Live performance ASD CPMG our plus disappointing previously bicycle the increased our September. our of impacted category in in and show our in Design trade quarter. XXXX category difficult events the launch shows, to in We NOW contributions growth Interbike new for CPMG slight this our As from conference to offset the acquisition. second fourth organic the from first due saw a

percentage, Our excluding included profit, which assets and of other low-double-digit products, were XXXX revenues revenue comprised marketing services approximately of in X% that percentage an XXXX lower a by in acquisitions. our in declined our even our

industry and highly to a characteristics with growth opportunities. forward one remains the good XXXX, strong BXB attractive Looking financial events and relevant

growth of previously X% and of the To through projects several we XXXX execution underperformed by portfolio we've growth trajectory within calls. XXXX In exhibitions fact, revenue as combination both management are factors acquisitions of backdrop, discussed changes to term own show-specific long growth AMR market said, the U.S. the in have you Against November strengthened X.X% XXXX recently International we've of Globex this in in portfolio released enhancing Report That annual through several assets XXXX. the aware, average our in to and external against made strategy growth the team, and the of these positive industry resources against growth due a XXXX. business, our overall the of help brands. our that targets internal to on and restore our

strengthening at and of brand resources plan on we a the add team growth marketing decision-making our made local new more accountability. and time. XXXX, capabilities, will expect changes meaningful we to aimed leadership also structural sales, have particularly in performance and organic impact management over First, revenue which a during We've improving added and number and and

and Morse, events, in One our a XXXX President of already hires the content trade fourth number - education us has Development. component Johanna of shows. of is enhancing conference Johanna years XX and quarter as our at more attendee in conference experience Conference of the of who key than the our Vice improving management experience was and Senior joined

ramped aside set attendance deliver additional highest and exhibiting attendee value attendees. for funding and to commercial adjusting are exhibitors, efforts objectives better for the ensure are Second, our and experience of enhance and meet companies. exhibitors and find to of the up for participants our marketing attendees quality our our and our criteria selectively We've the we've to our shows more event

music, as refreshments, decorations, and amenities For additional as investments educational our lounges stations, and show improved the more opportunities, additional well floor enhanced and such signage attendees, charging greeters. as transport, and include networking

investments. show to start targeted see noticeable least will likely initiatives at Our our cycle a return take one on to

this reposition Third, NOW's York relevance and New for specific to some provide fundamentally year aggregate to but tough our in on and shows, approximately York winter of success and a shows overall absorbing of X% perspective To NOW proportion profit to XXXX two decision after portfolio, brand summer the revenues, to lower future. we the overall in the the generate our necessary the our our New modestly impact. we've repositioning made expect

home New been National in reminder, highest lifestyle, globally New moved our a category, quality Lifestyle May we're creating co-located was leading replaced improve Home category, attendees Stationery New a of of show categories. to we a in of the independent New and oriented In featuring add to York upcoming which will York And in NOW our support curating key In actively designers, lifestyle already of some has As the trade and the show, we our that's design-driven exhibitors with York the high NOW the XXXX section reinvigorating beginning its strategy goods Summer the Show, the quality small with previous source timing. recent the inspired of will retailers exhibitors show, jewelry editions, this which NOW August gift from the and category innovative Winter York for U.S. attractive softness up attract home, show, JA the section and alongside a exhibitors. is the show. unique handmade home section we're main design-forward performance our event which brand. replace upscaling products NOW, and gift At for our and more

our almost triple responsibility significant the changes in NOW in Kevin. City, size York of It for under taking ICFF furniture New at contemporary the fair have that high was implemented six years end and show We since being New York confidence ago. over

was event attendee investment to markedly NOW the and We're National week. co-located New report And to that event in feedback Stationery of thanks attendance last to Show. out was of up XX%, coming recent Turning pleased that staged marketing than the our approximately York benefits the stronger the additions.

to takes twice-a-year these build given our indicators momentum very leading While it encouraging. are show are time cycle, important that

teens. a the third experience decline we Although to the of make order our Lifestyle more category to with we in It's approximately curate decline market were actively a our high happy in did important Show. parts National to for reaction of to revenue the decision that reflected this the room Stationery percentage show, note

as Home floor category, Dixon of last part lifestyle and show the strategy enhancements the home, New U.S., in reestablish And prestigious new to in overall several gift extended in the added and and the we continued we've As introduced such show York Swarovski. we summer NOW that Italia show. the as Tom features brands and preeminent

and feel floor. look was than and of the there year show Importantly, the a excitement palpable dramatically last of was show better on buzz the

perception in New show's many marketplace. we the our the was excluding decline of is XXXX show, we've the effect the coming NOW the summer in of show line aggressive of turned out as the for our While York curation that with around revenue successfully anticipated, feeling

will that who's me minutes. York show. here improvement architect being detail in see As questions which a transformational we're the trajectory answer implemented XXXX few result, Kevin today an can and with a of New and are the initiatives the NOW optimistic revenue strategy, summer more in on we offer this is for

improved This quarter which staged November our season, Long saw calendar Miami as second at Show Expo Sports Convention was new is Licensing versus revenue last Surf two settling a well shows, year, couple trend from ago, busy the years of Denver. shows Center first over Retailer of the the back as ISS on and A weeks our the to buying Outdoor our performance flattened shows, Snow temporary We following the Original winter in Show, its Turning Miami XXXX. of after in growth our Beach for Antique Beach good two Beach we of XXXX/XXXX venue. show. winter

our edition was adopting The more for and just down strong mid-single-digit OR show Although by to meet the the excellent. industry revenue latest is winter attendees. that customers completed this energy January the our expected January by up development be winter show, versus November events, season's a than decision introduction show total product of and this demonstrates January versus received to exhibitors single season's shows, revenue last year's at their feedback And needs. January the projected positive our to and mood floor of which XX%, three-show percentage and last from format many two be is are recent we

high-single-digit on the is years the a and Vegas by show of which Looking ahead, takes The & and is continues every Las year expected and after and Industry the Show, the next place rotates Kitchen this two staging major for Orlando XXXX revenue KBIS be increase last XXXX, will years. show in be Orlando percentage. for week. in between calendar next few Bath to one performers Vegas, our to strongest Las

Association and We the the International enjoy National conditions with continue Home to robust beneficial of benefits Show. Builders' Builders' market our co-location of mutually

takes place Week on time. me show which provide in Market in a our month's update Las let ASD an Lastly, Vegas

Source category, in with a flat offset category category and the revenues, largest show suggests the modest XXXX over the continued Style notable Beauty. improvement variety, excluding in value current small growth and second in by will show's pacing softness Our our partly Direct largest that of

China that and Direct tensions the been Overall exhibitors the Source the our which trajectory. certain we're the and improving brand's by ASD our current appear who international hit with Our be between marketing to sourcing initiatives section, needs has ASD, disproportionately revenue many attendees, trade fulfill of U.S. investments and pleased houses sales

that to includes projected $XX for $XX Total between of acquisitions. our release full is XXXX in me X.X%. earnings XXXX to from second X.X% between decline revenue now revenue outlined XXXX growth be and let to earlier of $XXX range million guidance of a issued was This year So, million today. representing our million, million in $XXX XXXX incremental and our shift half

and aggregate, into impact growth our we a New broad trends and the from of past York be potential revenue of and the shows our Marketing revenue edition of in Outdoor by relative an of additional NOW in the growth revenue NOW program. performance in million ASD the of expected our the consistent the relating event. half of incorporated conscious to good $X and approach, success any between Retailer first reflects decline, of these New X.X% We good and shows for have the reflecting guidance. X.X%, York visibility in of a our products New particularly of guidance growth range curate to anticipate to with complete decline Without While decision acquisitions We're which November show, two range may would between decline of and projecting year, brands, our growth our year Other of the X.X% not growth the the our the full from organic X.X%. reposition outcome summer, tightly partly revenue NOW to assumed our the our many half New Services outcomes growth for into revenue organic year, York of our million $X second rate performance second more our NOW in we York launch offset

relates orders revenue mainly events included the low-single-digit brands, year. to for our U.S./China our we're regard major expect three received including at to potential November XXXX, we launches, the January in exploring shows event trade we winter prior opportunities other mid-point And guidance exceed Retailer The that. in versus for other event. With in assumes although of brands, inaugural the the working the single in we're from the the driven situation, in and to XXXX X as large event. currently new North and Outdoor a slightly by several later participated be aggregate show XXXX whom scheduled positive it XXXX November obviously and have As Face, also It's ASD, from decline the several benefited the XXXX of Patagonia to influential we new neither for that encouraging early year

Additionally, as XXXX The we and an in in adjusted previously are place that of far there that show a revenue approximately disclosed. took Interbike was $X.X in by these in XXXX EBITDA. these in estimated few XXXX. largest In contributed $X.X will million not events repeat aggregate, events our million

of acquisitions its these profits of year incremental of aggregate, the program is portion took before more incremental than We growth for addition driving the case Turning key where estimated $XXX representing the our of which totals profit for show the from significant XXXX brands. decline between million. we've the make believe million. investments events largely full just EBITDA in BDNY previously several impact repositioning events growth, to to to time decline two in and deliberate $XXX the the future versus this guidance XXXX is position in NOW investment in noted for York the New relatively a million, is In a of is $XXX.X our and and discontinued decline factors flow And are EBITDA, XXXX profit sales of resources the was million place, in the initiatives XXXX's timing adjusted marketing adjusted right in this of and to our in recognized experiences to and Based The of in ramp through XXXX, modest. the revenue largest beyond. XXXX. XXXX, expected revenue improved decision acquisitions Emerald decline this $X in up on our to

a we net higher on effective tax in rates which in million, report XX.X% $X.XX the projected XXXX. report a between between reflecting Based to average rate. slightly shares expect and represent between to for income, year, to and increased versus of of Turning EPS the to our million we and adjusted expense decrease diluted for and X.X% would the increase assumptions due change $XX expect adjusted number outstanding, $X.XX interest a $XX

items and the contributions our our cash other cash cash offset higher our Lastly, flow flow XXXX adjusted expectations taxes and interest of guidance higher by cash free reflects EBITDA lower our lower and projections, acquisitions, non-recurring CapEx. modestly

million, million We a million in versus $XX flow $XX.X XXXX. to $XX million cash reduction to range of between and $XX.X expect be free the of

generative investments term in year business prospects. resume coming flow improve during very a free Our years. we're conscious cash even making is to our expect cash our growth longer would to And when we the

bought in we and million XXXX. by definition between we've and M&A, high-quality with multiples different. annually to at million accretive activity $XXX for is pleased businesses The episodic, were $XX Turning acquisitions XXXX nature was again our of no but reliably

are Having continue this see opportunities in pursue. surprise see might We There expect with to the respect selective that our in should very no come and I short-term caveat would for activities; many opportunistic to a slowdown to always which review in activity. we that, acquisition and market it reasons the said we as although will slowdown. you several are our that be near-term with

the desire our to organization sense entire investments we're is make second inputs First, it of benefits hiring in a the new we're to CEO the most in maximizing Emerald to the And of wait person's business. process. would incremental strengthen have have on is process that making that focused the the to recognition the and

noted evaluate make meet them. however, for to will and our our we if we'll the sense portfolio they is pursue that continue strategic appropriate, businesses valuation and quality financial high And criteria. As

prospects. using bold and we're strength our about brands large future stabilizing portfolio making enhance company. driven toward progress in be and that large pockets our comprised the saying of that And We're making management we're are to part of are events a large our each to number confident our largest which is several is improve of though There that benefit and end their optimistic future health specific experiencing our moves there conclude currently We're consistent shareholder our remain on and and is continue value. disciplined York making ASD brands. What this creating growth capital dividend below capital form debt, and for portfolio. necessary cash allocation their shareholders in to potentially, New a shares and intrinsic the that means payments, in financial special criteria, quarterly attractive meet materially the we'll certainly being acquisitions strategy is happened of back the potentially portfolio, of total and our or factors. to growth discrete of at buying surplus and team cash focused Emerald return via portfolio of weakness. pursuing regular to me a return of shareholders investments value. down our our of Let they're different NOW be of pay by which events, to to by when the the our continued strategic And market to diversified the dividends provide has trading

Lastly, interviewed events we're with far candidates CEO both from excited outside the thus and come have who that been inside industry. the

hopeful ongoing, appointment our questions. CEO While a new are With the coming the conversations let months. that, me in we're for to open operator please in to we'll the call the be ask position announce of

Operator

you. Thank

a from session. Please the Our be line now RBC conducting will question. proceed Instructions] question Weber comes with question-and-answer of [Operator We Seth your first with Capital Markets.

Emily McLaughlin

on Good This today. Seth for is Emily McLaughlin morning.

anything read about comment on received cash lower the there? receipts they fourth rates ago? lower Are to Is future meaningfully shows there were than a year question in a into for quarter. the Just renewal

Philip Evans

hi, just is this Now, - Emily.

Emily McLaughlin

Hi.

Philip Evans

Phil. is This

over As decline and they it shows, about and improved XXXX. slightly related If at York NSS XXXX, the talked is entirely renewal for have to rates QX we really the we a were actually look show, in NOW we that. New

I think or related one it's to two So shows. specifically

Emily McLaughlin

is legacy of digital the that any table any on business having brought the yet? on then there? EH And the marketing side, stabilization to impact knowledge the see are Okay. to And Media starting you any

Philip Evans

it's the And The and of some because the largely our out, that. services and doing skills brought Design in Media And products a recently, Healthcare other adopted of the other as we saw brands. process - in being seen using is marketing with some print them. other piece I the it's brands we're advertising. that pointed - I've EH techniques the several, initiatives you obviously challenge, of day of

can benefit we're some from that. that So to to It but we're optimistic. definitely do really that, optimistic time take going is we

Emily McLaughlin

in on does any if pricing think one, a have one still X% I hold? last the that And just may, guys environment? past, to update year talked Okay. X% you about I the

Philip Evans

as we - based blends it's Broadly I kind the out to relating mean, be in decisions on have explained it other a all that factors And a at show-level, to still past, holds. those of I make in the mindful show. individual of conditions, that's account said. very that's when much we're shows the And of and of range into individual markets what that pretty the we the each same you just pricing. the take thing. doing We're the the

Emily McLaughlin

Understood. all the That's Thanks me. time. from for

Philip Evans

Emily. Thanks,

Operator

Thank you.

next line Our the from proceed Robert Company. Baird with W. comes question question. with & Jeff Meuler Please your of

Nick Nikitas

Yeah, Nick morning, Nikitas for Jeff. on good

forward? or a the maybe view XXXX as adjusted offering attendees structural the an at onetime investments are for that to events looking investment for more of just to these in your going you marketing, investments EBITDA potentially change out, or level or So things and you need require enhanced and higher a of decline would called incremental kind sales Phil, you guys more

Philip Evans

in attendee million Nick. I out, and is experiential Thanks, we that onetime related. call half about Of would really of aren't nature $X say. They the

really of that of spaces - and learned The and show design So view things a York through refreshments, we've New and market the actually that is, would be the that exercise investment the NOW things and like what difference. those that a are lot these and lounges, in changing make things education what New was from, exhibitors, we'd was. at bunch refreshing We them people difference at them. it NOW, tabletop shows introduced and got a mentioned unsolicited revert what these said, a that noticed the exhibitors things who the appreciate and of and show from one it of the of York an a email

other important. to the opportunity And total change those heads a faster because of we to are things And those the things over obviously, growth doing And is half the could about what we third so we're of kind to relates time, around see marketing is over think and sales and about piece experiential. fuel of we time. then but largely, the grow

those attract initiatives the so, more other around growth And a piece forward. will things will attendees. X, and is And drive that better to that's math-wise attendee going continue then or

to going isn't do as and kind be forward. that specific nothing something to we continue go there's do So we of

Nick Nikitas

And or in from on Okay. multi-year you incremental any you're just think of build-out kind things, other flipside of do revenues feeling that these XXXX the That's the the or XXXX drive investments really revenue side in the are you specifically? of the helpful. cost can enhancements

Philip Evans

much not really of we'll in get a XXXX. that anticipating pickup We're

we'll As a our program XXXX the ASD of summer continued events. we're already by on really New particularly investments, the which and probably time you shows. York NOW, selling can the investment, is the of And imagine, be third we've selling

expect when so, to about that's we're being we on impact I the start pickup XXXX. to think and And cautious the pretty see

Nick Nikitas

Okay. the NOW, Shifting uplift. see attendance York to nice to New

Now, pretty big that trends, Is XXXX changes the is the that is you're that offset Or improvement bookings by are? benefiting early of take exhibitor been given how implementing? the in than but early is stages show it's more a exhibitor it's will the something until something number. likely

Kevin O'Keefe

This is hours. we XX,XXX describe guess, two show the NOW first in Kevin. people what get Bowl in Sunday, Super to the best happened way Well, up I York New that is

the exhibitors a So quiet to experience was positive shock, strong.

attendees. so by - positive - as was reaction who different a and result so, the and And expected exuberance, also on so part exhibitors of the quite result, not

to more again see and I that previous attendance create gives to, an to So really move then event. that entirely we momentum much will us vibrant us the as help flash think new And in summer XXXX, bring show we into the year. will it

Nick Nikitas

be year second rebound just with shows the near-term in the there it of is or sales NOW is difference between you've that product in potentially going ASD, given implemented could and or two a leveraged substantial some just kind New ASD from And a mix quicker forward? you at York saw declines improvement ASD changes the somewhat Okay. something more

Philip Evans

the are think in similarities things issues New and less kind are Kevin NOW. Phil, you we've what New approaches, at - markets between some much do declines They're some this So York the tell are and very experiential that different saw declines on. that of case than at difference ASD marketing summer we in we of York of saw can't the XXXX there and in sales modest taken, and and were initiatives is ASD the going Phil. with The I in NOW at and different.

quite but parallels, issues markets quite are somewhat different are different. those end and the the So are

Nick Nikitas

was other me. that being Okay. from And out. so, and that in And, one similar shows question guess, the Initially events for ASD something have comment The throughout portfolio? then felt tensions impacting shutdown? recent necessarily just I wouldn't any the jumped is trade government-related last

Philip Evans

of I lot shows kind we are a products we world the is and China. of So, have the a with made live of nature mean, lot products, in of in

exhibitors. is The - where there have is an impact particular category, cost that a for sourcing show. of we ASD, our of single-digit more potentially broadly a in so, place which the of some on And percentage revenue

and up costs if at modest of point. But real directly have at effects But any into translating this but affect And revenue the shows, shows, time. ugly, a impact the kind other seen of then and so ASD and at there excluded ramps conversation that's isn't and note. anywhere we're much really it'll into really of it else pretty it impacts are concerns anything those on pretty least more of from much kind seeing other if for event translating slight of it perspective it of more a we are And in this shutdown. input the at than And haven't concerns but the kind we military continues, from the it not if affected. really some some any exhibitors. shutdown, gets the It's revenue that really

Nick Nikitas

Thank you. Okay.

Philip Evans

Okay.

welcome. You're

Operator

Thank you.

Our proceed question. next Deutsche with your line with Ashish Please Sabadra of question comes from the Bank.

Ashish Sabadra

Thanks. on itself. show NOW follow I'll New the just York up

expected you'll you think a growth your maybe are it exhibitors improvement, those? XXXX, see expectation more are come or both - start do be in expect it about turnaround the expecting So revenue - your is or going how exhibitors you spending in money, is you is of more the to turnaround existing

Philip Evans

I'll the let Kevin do of So bit. kind second

and will is might point that's York we've there shows, the and like The guidance feel second-half fairly on are wide because from inflection think seen we a really ASD. that a cautious be. where where first that bit we're perspective, - NOW New on really guidance of But number is you our

we'll definitely Hopefully, pointing better, but And and to right that what else to But, in want things about later at get talk we're the get we're will on that point that trajectory the this in able Kevin, year. think point. so, you to not be XXXX specifically growth we to and add?

Kevin O'Keefe

so new was York introduction around we Well, section spaces in floor the sweet NOW I the look with who and York had the that to very show of what that came in a Renaissance Retail of by was Talks. terms experiential of reworking York exhibitors hundreds the at exhibitor the many is top NOW, New Transcend to positive. mean, relative time I the was in and Transcend trend think bringing material most designers big New on New marketplace, the impacted over in returning those done of And was and designed content dramatic wrapping Home.

Rene New showrooms not here people engaged New it. who the York in so B&B with interested only [ph], involved people like we and in been NOW have so, but Lalique And [Groschba] very York and of all Italia, that [ph], never before top are and [Christofo]

Home So of dramatically. that the is changing nature event

think And change was time. I significant. And XX% think this that in lift so it's attendance I big

look of to much stronger be to we going forward terms in stronger As it's attendance. summer,

a into for a into it's that resource big that's being the and think States. NOW momentum evolve it retail us show I independent the York to as indispensable going better so, being, United New much the XXXX is on different, based And event in push all we

view the I'm So about positive towards XXXX. very

Ashish Sabadra

follow-up just Okay, question. a helpful. now, that's And maybe

concerns the the exhibitors around lot challenge of So on the go the one attendees is where investors side, more of exhibitors is the a up, even have might that fact if are seen in those Thanks. changed be color marketplace front? Have allocated. on budgets may marketing trends you way struggling or or - maybe any have that the the any of their

Kevin O'Keefe

No, effective extremely not at when is trade well. I show all. done mean, model which the one is

the sales mean, no you way sales The e-mail to in a face As calls. time, long effective take works. they longer face such I because been most person for to a people, sell. is won't the the really and really call can't

don't meet them if So face. to you face

it really done. You get can't

So when well and the it extremely put together both come of on exhibition all for right works can attendees content the will those you parties. side,

anything, more that be you works. shows, trade in a model and deliver invest do And cognizant best that, of companies And to always content that but will if exhibitors while grow. successful because must it very can so, do model But a best attendance. nothing is you you have

Ashish Sabadra

helpful. again. That's Thanks

Operator

Thank next your with of Bank of Please you. proceed the [Operator Chu Our David question. with America question comes line from Corporation. Instructions]

David Chu

question. Thanks Hi. taking my for

assumptions overall are each of what growth for just to So embedded guidance like the segment?

Philip Evans

difficult easily. services trade and shows I'm a question. mean, That's events? other other say you do And you when of actually sure I'm that…? David, marketing capable What not that you answering do mean segments, in and

David Chu

mentioned, exactly, you what yeah, just Yeah, just Phil.

Philip Evans

Okay. show we of It's of the is middle characterize let other of kind the year. business, the on really which of the the than going dependent that say kind in show piece to The me tough obviously where is how are. trade business, bulk of the is

know NOW shows of know kind We we the Outdoor in know Retailer trade down and New New York of As We remarks, will slightly. part. I We we growth launches. prepared is Outdoor down. in quarter the the the NOW, York KBIS is have Retailer level have ASD, Those first up. we really said determine show have is

you a kind guidance fairly the given quarter. fairly terms reasonable small in of of our broad from full lot a of pieces low-single-digit growth. probably the the in we've is first And to decline So year

marketing the we're that. fairly pessimistic, On realistic trajectory of say fairly we're about wouldn't likely the but other I services,

that we on expectation think things give us have that the business. much CPMG - in launching one I was a we're as They are will nicely. through as hopefully some decline, working an have modest do already It's event did. better opportunities certainly of Emily - So there. And decline. I sold then, was it great earlier that growing out. the telling, we They're that they've acquisition certainly some other events pretty We XXXX piece,

the So kind part I also the grow the is of mentioned a decent in we're as be other part that portfolio, Johanna, helping that of the some that prepared is growth remarks, who events portfolio of in well. us there'll which optimistic part

But optimistic. we've we're portfolio, kind guidance range the as optimistic, So we're of the tradeshow I cautiously outcomes. the expect, of think in you'd the looked potential that

David Chu

That's expected be highlighted down helpful. of ASD expected great. can it then the in to purely flat trade China Winter was on would you maybe it recent to Was Okay, speak to just then, and So up? have And that the be underlying, XXXX. kind you you tension?

Philip Evans

SourceDirect So flat, section. I said it exclude was the you if

a And the will category expectation be it the growth flat. been the would SourceDirect to expected have down past. in overall. is So it We be slightly has category actually

So of could which have years, doing we then if have little had at could we eeked rate implemented that been we have that had grown that We out at seen it several the think over the growth. bit - things a that those have sales results there we us and getting shows. quality marketing point team, confidence and in team to the the and a areas, now of in the is more can of the the where stability have we of the

David Chu

That's you. great. Okay, helpful. very Thank

Operator

you. Thank

to question-and-answer remarks. over of Evans call any like closing to back the would our We end the session. I turn Mr. have reached for

Philip Evans

as heard, still for But we going do XXXX. NOW here. XXXX making we've probably York thanks, for improved and and And Michelle, cautiously inflection in the challenging we joining you ASD. joining you, have we're was feel a that thanks Thank Kevin, Clearly, good the drive and to everyone optimistic to call today. year me investments growth about And we're point to reached really for New forward. the work

to CEO really and of the of the I I'm I will than So company's inherit for I'm and more while. about our a optimistic about the excited And the personally, state the have feel company's really stage looking business the that next forward done situation growth new probably success.

the thanks again I'll back So, operator. joining and hand for to us,

Operator

teleconference. concludes today's This you. Thank

and your participation your disconnect wonderful day. have lines time. Thank for a may You you at this

Emerald Holding (EEX) 16 Feb 192018 Q4 Earnings call transcript